Egypt median interbank drops to 8.76 percent

The median overnight interbank rate on Egypt's pound dropped to 8.76 percent on Monday from 8.791 percent on Thursday in a liquid market on the last day of a two-week reserve calculation period, dealers said. "The market is still very liquid because it's the last day of the reserve ratio period," one dealer said. Sunday was a bank holiday in Egypt.
The central bank was not auctioning any certificates of deposit, which tend to absorb market liquidity. In the absence of these typically higher-yielding instruments, banks tend to revert to the interbank market.
Rates have been hovering just above 8.75 percent for the past month. The central bank keeps overnight interest rates within a corridor by offering to borrow at 8.75 percent and lend at 10.75 percent.
Seven out of 10 banks contacted by Reuters reported overnight deals in a range of 8.755 to 8.78 percent compared with deals at between 8.76 and 8.79 percent on Thursday. No banks reported dealing in one-week money. The Egyptian pound weakened to 5.6971 against the dollar, compared with Thursday's closing weighted average of 5.6967.